SB 6 – Government overreach in Energy

The House version of SB 6 grants sweeping new powers to ERCOT and state regulators to micromanage how large electricity users connect to and operate on the grid. It allows ERCOT to forcibly shut down or curtail power to large industrial users during emergencies, likely impacting manufacturing, data, Artificial intelligence and cryptocurrency related businesses the hardest, potentially discouraging these businesses from moving to or expanding in Texas. Businesses would be required to install and disclose on-site generation and may be ordered to run it by ERCOT, potentially at great cost and liability. The bill imposes hefty upfront charges on large users for grid access—despite the fact they already pay ongoing transmission fees—amounting to double payment for infrastructure. Additionally, it opens the door for ERCOT to deny or impose conditions on private net metering arrangements, raising serious property rights concerns. Taxpayers are also on the hook for more than $2.6 million in new spending and nine new state bureaucrats to enforce these mandates.

Instead of addressing the root cause of Texas’ energy instability — government subsidies for intermittent energy — the bill further distorts the market by shifting costs onto businesses rather than holding unreliable generators accountable. This government intervention expands bureaucracy, increases regulatory burdens, and forces ratepayers to subsidize grid management failures. The bill represents yet another attempt to “fix” ERCOT through top-down controls. Rather than promoting market efficiency, this bill grows government oversight, penalizes large employers, and replaces grid neutrality with regulatory discretion. It sends a troubling signal to businesses that investing in Texas energy infrastructure may come with unpredictable costs, rules, and power shutoff risks. A fiscally responsible approach would eliminate subsidies for all energy sources and let supply, demand, and competition dictate Texas’ energy future. For these reasons, TFR opposes SB 6.